PSI8.2.24 - Lump Sum Benefits and Communication: Commutation Factors - Level Pension - ABI Table
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(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)
[PN7.42]
The acceptability of commutation factors depends upon the circumstances of individual schemes. We do not impose any specific tables of factors. The Association of British Insurers (ABI) publishes a set of factors for use by its members which is suitable for schemes which provide level pensions. The table is as follows:
Age | Men | Women |
| 55 | - | 12.2 |
| 60 | 10.2 | 11.0 |
| 65 | 9.0 | 9.8 |
| 70 | 7.8 | - |
Values for intermediate ages are calculated for either men or women by adding or subtracting .02 per month of age difference. Consequently we have adopted this table for level factors in PN7.42 for the approval of schemes on or after 29 November 1991 providing benefits for members with continued rights. Following the European Court Ruling in the case of Barber v Guardian Royal Exchange Group schemes may intersperse unisex factors between the male and female points according to the gender composition of the scheme and the service/benefit experience of the membership (see also PSI8.2.41).
